California Attorney General Rob Bonta announced that the U.S. Department of Education has agreed to maintain access to hundreds of millions of dollars in funding for academic recovery programs in California and other states. This agreement follows a legal challenge led by Bonta and several states after the Department attempted to rescind previously awarded education funds.
The stipulated agreement, filed in the U.S. District Court for the Southern District of New York, keeps in place a preliminary injunction that prevents the federal government from withdrawing these funds until all disputed amounts are disbursed. For California, this decision secures over $200 million already allocated to school districts for initiatives such as afterschool and summer learning programs, educational technology purchases, and mental health services.
“President Trump should not be playing games with the academic future of our children — but when he does and when he breaks the law to do so, we’ll see him in court,” said Attorney General Bonta. “This reversal by the Trump Administration is a huge win for California schools that are relying on this funding to support struggling students and ensure their academic success. It means they do not have to wait for litigation to play out and can confidently spend down this grant funding today. We’re continuing to secure full and final relief for Californians across a number of our lawsuits — and we’re just getting started.”
The dispute began on March 28, 2025, when Education Secretary Linda McMahon notified state departments that access was being rescinded to education funds intended for student recovery efforts following COVID-19 disruptions. These programs target lost instructional time and address needs among marginalized groups including homeless children and those in foster care.
On April 10, 2025, Bonta joined other attorneys general in challenging the Department’s actions as arbitrary under federal law, arguing it would cause immediate harm to school districts nationwide. The court granted preliminary injunctions on May 6 and June 3, 2025, preventing removal of funding while litigation continued.
Attorney General Bonta has filed numerous lawsuits against federal policies during this period—46 suits in 42 weeks—with early victories protecting state funding streams and services. He has also obtained permanent injunctions against federal attempts to tie immigration enforcement requirements or cutbacks to grants related to transportation, homeland security, energy programs, AmeriCorps funds, as well as stopping deployment of California National Guard resources outside the state.
Preliminary relief has been secured in most cases where courts have ruled so far—including blocks on new restrictions affecting public benefit programs based on immigration status or data-sharing requirements related to Medicaid or SNAP recipients.
Further details about ongoing efforts by the California Department of Justice can be found at https://oag.ca.gov/federal-accountability.
